New England Council Urges New England Delegation to Support Bipartisan GROWTH Act
On July 8, 2026, The New England Council sent letters to members of the New England Congressional Delegation urging them to cosponsor and support the bipartisan Generating Retirement Ownership Through Long-Term Holding (GROWTH) Act (H.R. 2089/S. 1839). Submitted on behalf of the Council’s Financial Services Committee, the letter highlights the legislation as a practical, commonsense reform that would modernize outdated tax rules affecting millions of mutual fund investors and strengthen long-term savings opportunities for New England families.
With affordability continuing to strain households across the region, the Council emphasized that mutual funds remain among the most common vehicles Americans use to save for retirement, higher education, and homeownership. Under current law, investors who automatically reinvest capital gains distributions may owe taxes on those gains even though they have not sold their investments or received the proceeds in cash. The Council believes this unequal tax treatment reduces the long-term growth potential of those investments and places mutual fund investors at a disadvantage compared to other investment vehicles.
The GROWTH Act would address this issue by allowing investors to defer taxes on automatically reinvested capital gains distributions until they sell their mutual fund shares. By aligning the tax treatment of mutual funds with that of many other investment products, the legislation would promote greater fairness while allowing more investment earnings to remain invested and continue compounding over time.
In its letter, the Council noted that this targeted reform would strengthen household savings, encourage long-term investment, and support the financial security of millions of families throughout New England. The Council urged members of the New England Congressional Delegation to join their colleagues in cosponsoring the bipartisan legislation and working toward its enactment during the 119th Congress.
For more information on this issue or the Council’s Financial Services Committee, please contact Natasha Silva.